The LG said in a public notice on Nov. 2 that LG Group Chairman Koo Kwang-mo inherited 8.8 percent of the 11.3 percent stake in LG held by his father and former chairman Koo Bon-moo.
Chairman Koo has become the largest shareholder, with his shareholding increased from 6.2 percent to 15.0 percent. The remaining shares of the late chairman were shared by his eldest daughter Koo Yeon-kyung (2.0 percent) and his second daughter Koo Yeon-soo (0.5 percent).
Chairman Koo and heirs will split the inheritance tax for the next five years through the annual payment system (a system that pays part of the tax over a long period of time). They will report inheritance tax and pay the first inheritance tax by the end of this month.
The inheritance tax for the heirs is expected to be more than 900 billion won, the largest amount ever paid in Korea. The inheritance tax that Chairman Koo should pay will be applied to the value of stocks that add 20 percent to the average stock price of LG for four months before and after the death of the late Chairman Koo Bon-moo. "We plan to pay inheritance tax on stocks transparently and sincerely in accordance with relevant laws," an LG official said.
It is expected that LG`s fourth generation management system will accelerate as Chairman Koo, who received the title of CEO and chairman through the LG`s interim shareholders’ meeting in June, has secured a stake.
In the business community, it is predicted that Chairman Koo will lead LG's personnel management at the end of the year, making a new edition. Some are predicting that the management of major affiliates of LG Group will be replaced as the chairman's generation has been changed.